21Shares launched Europe’s cheapest physically-backed bitcoin ETP as part of its new crypto winter range designed to help investors weather the bear market.
The 21Shares Bitcoin Core ETP (CBTC) – the first in the new suite – listed on the SIX Swiss Exchange today with a total expense ratio (TER) of 0.21%.
CBTC will lend a portion of the underlying crypto on a fully collateralised basis to offset the operating cost which will start once the product achieves a sufficient scale.
21Shares said the 0.21% TER was chosen to reflect the 21 million cap on bitcoin, undercutting the next cheapest physical bitcoin ETP, the Fidelity Physical Bitcoin ETP (FBTC) which launched in March, by 44 basis points.
The cheapest bitcoin ETP in Europe is Valour's synthetically-replicated Bitcoin Zero SEK (BTC ZERO SEK) which has a management fee of 0%.
The issuer added it will look to launch more “bear-market orientated products” which will provide investors with a variety of ways to access the crypto ecosystem. This includes low-cost products or shorter-term tactical allocation products.
Arthur Krause, director of ETP products at 21Shares, said: “Given the current market environment, many investors are looking to ‘buy-the-dip’ and generate the maximum potential long-term return.
“Our crypto winter suite will provide ways for investors to dip their toes in the water at some of the lowest costs on the market.”
Bitcoin is currently down 55.8% year to date and last week briefly dipped below a significant price milestone of $20,000, its lowest point for 18 months.
Despite rising back above the price milestone there is no sign of respite for bitcoin which continues to face macro and micro headwinds including falling equity markets and skyrocketing inflation.
Hany Rashwan (pictured), CEO and co-founder of 21Shares, added: “We have seen investor demand for low-cost exposure to this asset class and the first product in our new suite does just that, at the most competitive pricing in Europe.
“Our bear-market products provide investors with a robust toolkit for navigating the challenging market environment.”
21Shares has been prolific in its crypto ETP launches over the past year. Last month, it launched the 21Shares USD Yield ETP (USDY) – listed on the SIX Swiss Exchange – which takes US dollars and lends them to counterparties against a minimum of 110% collateral in bitcoin and ethereum market-to-market daily.
However, USDY faced a dilemma within its first month and briefly stopped generating income last week as its issuer halted lending activity.